HomeMy WebLinkAboutAgenda Packet - May 21, 1990 - CC AGENDA EM
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CITY OF AZUSA
Azusa, California
TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: ROY E. BRUCKNA jYD DIRECTOR OF COMMUNITY DEVELOPMENT I�* F N1')
DATE: MAY 21, 1990
SUBJECT: RENT STABILIZATION
Introduction
The City Council recently directed staff to investigate the
feasibility of rent stabilization for mobile home parks, in
response to complaints from mobile home park tenants regarding
escalating rents and capital improvement pass-throughs.
This issue has surfaced in numerous communities, especially in
highly urbanized areas. The basic problem is that most mobile
home park tenants live on fixed incomes. The cost of housing,
rapidly increasing value of land, and property owners '
corresponding expectations of a fair return on their investments
have outpaced the tenants ' ability to pay. The tenants' response
to this dilemma is to approach their elected officials to impose
controls. As a result, many cities have adopted rent control or
rent stabilization ordinances. One source found that over 40
California communities have mobile home rent control. An
extensive volume of case law has resulted over the years as well.
Rent Control or Stabilization As a Potential Solution
Cities ' typical responses to the conflict between mobile home
park tenants' ability to pay and the owners' expectation of a
fair return has been to adopt rent control or stabilization
ordinances. Such ordinances vary considerably, but typically
include the following:
1. Registration requirements - annual fees to cover costs of
administration.
2 . Creation of rent control agency.
3 . Rent rollback.
4 . Rent increase formula:
- annual increase (flat rate or % of C.P.I. )
- special increase (to cover costs or maintain a fair
return)
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1
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MEMO TO CITY COUNCIL - RENT STABILIZATION
PAGE 2 OF 7
5. Rent adjustment procedures (application to City agency,
notice, hearings evidence, judicial reviews) .
6. Vacancy decontrol.
7. Permissible grounds for eviction.
8. Enforcement and remedies.
Implementation of rent control ordinances has been costly for
cities. Lawsuits filed by property owners have included
challenges that owners have not been able to achieve a fair
return on their investment, that the ordinances constitute a
taking of property right, challenges as to the constitutionality
of rent control, etc. In addition, cities have incurred expenses
in providing staff time for the implementation of ordinances.
For example, the City of Escondido has an annual budget of
$205, 000. 00 for rent control administration and attorney fees.
The City of Carson annually spends $60-70, 000 on rent control
administration and $3, 000 per month on attorney fees. Examples of
legal defense costs include Montclair, which has spent $223, 000
in just one year and Carson, which has spend over $1 million since
rent control enactment in 1979.
It is obvious from these cities' experiences that rent control is
not an easy, and oftentimes an expensive issue to deal with. The
part of the issue which is most difficult is the question of what
constitutes a fair return. Many cities have attempted to devise
formulas in their rent control ordinances to define this
question. Invariably these have let to prolonged court battles
because mobile home park owners have disagreed and the formulas
have not been able to take into account the widely variable
situations of individual properties. There are several concepts
of fair return, however, to date fair return formulas are still
debated, are subject to litigation, and are difficult to
administer. Exhibit A provides information regarding specific
court cases dealing with rent control.
Mobile Home Parks In Azusa
There are six (6) mobile home parks in Azusa, one of which can be
classified as a trailer park. These are as follows:
Name Address No. of Units
1. Arrow Pines Estates 1081 W. Arrow Hwy. 103
2 . Azusa Mobile Home Park 812 N. Loren Ave. 47
3 . Caravan Mobile Home Park 600 Gladstone St. 107
4 . Foothill Vista MHP 840 E. Foothill 193
5. Smithy's Trailer Park 753 N. Loren Ave. 18
6. Sylvan Villa MHP 820 S. Azusa Ave. 64
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MEMO TO CITY COUNCIL - RENT STABILIZATION
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These mobile home parks all have recreational amenities to
varying degrees with the exception of Smithy's and Azusa Mobile
Home Park. While most are located in appropriate residential
zones, two are located in the M-2 manufacturing zone (Smithy's
and Azusa Mobile Home Park) . The zoning code allows mobile home
parks in the M-2 zone with a conditional use permit. Both
facilities have conditional use permit applications pending with
the City. Generally speaking, the mobile home parks in Azusa are
maintained in good to fair condition. Foothill Vista Mobile Home
Park exhibits the highest level of maintenance, with Smithy's and
Azusa Mobile Home Park among the lowest.
Typically, as is the case in Azusa, the mobile home lot is
rented-out to the tenant by the park owner, while the coach is
owned by the tenant. The coach may be encumbered by a loan taken
out by the tenant for purchase. In these instances, the tenant
pays the space rent, as well as the mortgage payment on the
coach.
Mobile homes are typically sold in place, because they are
expensive to move. In addition, vacancy rates in mobile home
parks are extremely low and many parks will not accept older
mobile homes. Typically, the cost of in-place mobile homes in a
park ranges from $15, 000 to $60, 000 and up, depending on
location.
Mobile home park residents in Azusa have complained about the
following:
1. Rapidly escalating rents of 5 to 10% annually;
2 . Pass-through costs of capital improvements made by
park owners without explanation as to the cost of
improvements and length of time of payment, etc. ;
3 . Tenants on fixed incomes have not been able to
keep up with these rising costs;
4. Long-time tenants who are paying lower rents are
being charged 10% annual increases to approach new coach
rents.
5. Rapidly increasing rents on vacant units which have a
negative impact on the saleability of existing units.
6. Deferred maintenance and reduced service levels.
7 . Rents charged are comparable to parks with full recreational
facilities and better amenities.
One example to illustrate the problem is one tenant's 10 year
rental history as follows:
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MEMO TO CITY COUNCIL - RENT STABILIZATION
PAGE 4 OF 7
Year Rent Increase Year Rent Increase
1980 $134. 65 10% 1985 $196.89 9%
1981 $148.25 2% 1986 $214. 61 9%
1982 $151.91 2% 1987 $236. 07 10%
1983 $164 . 73 9% 1988 $259. 67 10%
1984 $180. 64 9% 1989 $272 . 65 5%
Residents on fixed incomes have not experienced corresponding
increases in their incomes. They therefore fall farther and
farther behind.
The average basic rents charged at the parks are as follows:
Name Range
Arrow Pines $250 - $370
Azusa Mobile Home Park $253
Caravan Mobile Home Park $279 - $337
Foothill Vista Mobile Home Park $247 - $314 (new spaces: $375-425)
Smithy's Trailer Park $145
Sylvan Villa Mobile Home Park $269 - $275
Of these six (6) parks, only Foothill Vista offers tenants long-
term leases. This provides tenants more security in that the
terms and conditions are clearly spelled-out so that tenants know
what to expect. The other parks charge month-to-month rents.
Senior Citizen Apartments
There are two projects in Azusa that can be classified as senior
citizen apartments: Soldano Senior Village, at 450 North Soldano
Avenue (168 units) , and the Hermitage II Apartments, (146)
located at 200 East Gladstone Avenue. The average rents at these
facilities are as follows:
Soldano Senior Village: $535 - 650 (avg. annual increases 3%)
The Hermitage II: $402 - 412 (avg. annual increases 3-6%)
Both of these facilities charge market-rate rents and are not
subsidized. The perception of the residents concerning the need
for rent control are the same with these apartments as with
mobile home parks. Rents are perceived to have increased at a
much faster rate than the seniors can afford. Soldano Village
offers alease agreement that includes a 3% rent increase for the
second year.
4
MEMO TO CITY COUNCIL - RENT STABILIZATION
PAGE 5 OF 7
The Dilemma of Rent Stabilization
It appears from the examination of this issue that a problem
exists which must be resolved. How to resolve it is a dilemma
facing the City Council. On one hand, the needs of the residents
who cannot afford the escalating rents must be met, and on the
other hand the specter of significant staff and legal defense
costs to meet those needs must be considered, and whether such
costs would be better spent on the mobile home parks themselves.
There are a number of alternatives available to the City Council
to address the issue. These are as follows:
1. An ordinance requiring park owners to offer long term lease
agreements to tenants, similar to the City of La Verne's or
the Los Angeles County Model Lease (see Exhibits C and D) .
Conceptually, this would include:
• automatic rent increases for park owners once per year
tied to some index, such as the CPI
• any proposed increase greater than the index would go to
mediation
• if mediation failed, it would be decided by arbitration.
This ordinance would be much simpler to administer than a
traditional rent control ordinance, because it avoids to
define the issue of fair return and places the emphasis on
negotiation and agreement.
2 . A complete rent control ordinance and program with
administrative budget and staff for implementation. As
mentioned before, this could be very costly and time
consuming with questionable results.
3 . Direct negotiations with park owners to resolve problems
specific to a particular park. The extent of tenant
dissatisfaction appears to vary among the various parks. For
example, we have not been able to confirm the level of
dissatisfaction at Foothill Vista, whereas the degree of
dissatisfaction at Caravan, Azusa Mobile Home Park and Arrow
Pines is high. By direct negotiation, agreement could
possibly be reached without having to resort to rent control.
4 . Rent subsidies to qualified residents, to help bridge the gap
of the ability to pay. This would only be effective in
conjunction with some type of rent stabilization. See
Exhibit B, report from the Redevelopment Director.
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MEMO TO CITY COUNCIL - RENT STABILIZATION
PAGE 6 OF 7
5. Tenants' purchase of the parks either as an incorporated
management group, as a cooperative, or as a planned unit
development, where each tenant purchases his or her space and
belongs to an association. This requires the willingness of
the park owner to sell.
6. Unit sharing. Individuals living separately is more costly
than if the units and living costs are shared.
Analysis of Options
The traditional rent control ordinance as employed by such cities
as Santa Monica, Escondido and Carson have proven to be costly
for the City, as mentioned previously. Section 798. 17 of the
California Civil Code states, however, that the park owner would
be exempt from rent control ordinances if lease agreements in
excess of 12 months are offered to the tenants, which meet
specific criteria as stipulated in that code. The ordinance
adopted by La Verne and Los Angeles County are more consistent
with the Civil Code and could offer the protection residents are
seeking while minimizing the City's potential litigation costs.
Direct negotiations with park owners is also feasible and is
advantageous in that the solutions are more likely to be tailored
to the needs of the individual park. In parks where there are no
problems, no solutions are obviously needed. In parks where
there are significant problems, an extensive corrective program
would have to be negotiated.
Rent subsidies are also feasible, but only if some limit were to
be established on the park owners ' ability to increase rents.
Otherwise the subsidies would do nothing more than line the park
owners ' pockets. The downside of a subsidy program is the
possibility that the funds may not be available forever, in which
case the tenants would be hit hard when they have to pay market
rates all of a sudden.
Unit sharing is possible only on a limited scale, for obvious
reasons, and is not likely by itself to be a solution to the rent
control problem. This could certainly be considered in
conjunction with other programs.
The biggest obstacle to tenants purchasing their parks is the
ability to obtain financing and the owner's willingness to sell.
While this option might be further explored, it is not likely
that this would be an across-the-board solution to the problem.
6
MEMO TO CITY COUNCIL - RENT STABILIZATION
PAGE 7 OF 7
Conclusion
Rent increases in mobile home parks and senior apartments have
been unpredictable and have increased beyond what residents on
fixed incomes are able to pay. The City must be careful in
selecting the most effective and least costly approach in dealing
with this problem, in light of the city's austere budget.
Recommended Action
The City Council should select one of two options:
Option 1
Order direct negotiations with each park owner to resolve
problems within his or her park. One negotiation committee shall
be created for each park, each consisting of two (2) tenants, two
(2) owner representatives and two (2) staff members.
Option 2
Direct the City Attorney to draft a rent stabilization ordinance
similar to the Los Angeles County Model Lease Program or the City
of La Verne's, updated to reflect current law and court decisions.
REB/lmr
Attachments - As noted
7
EXHIBIT 'A'
California Cases Involving Mobile Home Park Rent Control
Ordinances
Carson Mobilehome Park owners' Ass'n v. City of
Carson, 35 Cal. 3d 184 (1983) (mobilehome rent
control ordinance included sufficiently precise
standards for rent board to decide whether increase
was "just, fair and reasonable") .
Gregory v. City of San Juan Capistrano, 142 Cal.
App. 3d 72 (1983) (ordinance not preempted by
Calif. Mobielhome Residency Law; invalidated
provision requiring park owners who wish to sell to
first offer park to residents) .
Oceanside Mobilehome Park Owners Ass'n v. city of
Oceanside, 157 Cal. App. 3d 887 (1984) (held that
fifth Amendment does not require that rent control
guarantee owner a reasonable return on fair market
value; it is sufficient that it assure a reasonable
return on investment) .
Palos Verdes Shores Mobile Estates, Ltd. v. City of
Los Angeles, 142 Cal. App. 3d 362 (1983) (ordinance
not preempted by Calif. Mobilehome Residency Law) .
Hall v. city of Santa Barbara, 833 F. 2d at 1280,
(vacancy decontrol) .
1
EXHIBIT B
MEMORANDUM
To: Honorable Chairman and Board of Directors
From: Robb R. Steel, Redevelopment Director
Subject: Use of Agency Low-and Moderate-Income Housing Funds
Date: May 21, 1990
I. BACKGROUND
On April 23, 1990 the Board of Directors directed staff to
prepare a report outlining how low/mod housing funds could be
used to assist senior citizens. This report identifies the
various possibilities without analyzing the pros and cons of each
approach.
II. DISCUSSION
A. Azusa Set-Aside Projections
The Agency must by law set-aside twenty percent of tax increments
received for "improving or increasing" the community's supply of
low-and moderate-income housing. Prior to 1989-90, the Agency
made findings pursuant to law that this set-aside was not
required because other funds were meeting the City's housing
needs. The Agency could no longer make this finding and tax
increments have been allocated to the housing fund since January
1, 1989.
The fund is projected to accumulate $2.4 million over the next
five years as follows:
Surplus/ Year End
Year Revenues Expenditures (Deficit) Balance
Beginning Balance 604,200
1990-91 450, 000 647, 000 (197, 000) 407, 200
1991-92 430, 000 0 430, 000 837, 200
1992-93 460, 000 0 460, 000 1,267,200
1993-94 520, 000 0 520, 000 1,787,200
1994-95 590, 000 0 590, 000 2, 377,200
Page 2
From: Robb R. Steel, Redevelopment Director
Subject: Use of Agency Low-and Moderate-Income Housing Funds
Date: May 21, 1990
B. Eligible Uses
Section 33334.2 of the Health and Safety Code provides that the
funds may be used for the following major activities:
1. Acquire land or building sites.
2 . Improve land or building sites with onsite or offsite
improvements, but only if the improvements directly and
specifically improve or increase the community's supply
of low-or moderate-income housing.
3 . Donate land to private or public persons or entities.
4. Construct buildings or structures.
5. Acquire buildings or structures.
6. Rehabilitate buildings or structures.
7. Provide subsidies to, or for the benefit of very low
income households, lower income households, or persons
and families of low or moderate income, to the extent
those households cannot obtain housing at affordable
costs on the open market.
8. Develop plans, pay principal and interest on bonds,
loans, advances, or other indebtedness, or pay
financing or carrying charges.
9. Maintain the community's supply of mobilehomes.
10. Preserve the availability to lower income households of
affordable housing units in housing developments which
are assisted or subsidized by public entities and which
are threatened with imminent conversion to market
rates.
These activities may be undertaken anywhere in the City of Azusa.
C. Affordability Requirements
Section 33334 . 3 requires that the low/mod monies be spent on
housing "which is available at affordable housing cost" to low
and moderate income households. Affordable housing cost means
that the rent or the cost of housing does not exceed 25% of
household gross income. The Table below shows the current
requirements for "new or substantially rehabilitated" housing.
Page 3
From: Robb R. Steel, Redevelopment Director
Subject: Use of Agency Low-and Moderate-Income Housing Funds
Date: May 21, 1990
Current
% of Maximum Maximum
Income Group Median Income Monthly Rent
Very Low 50% $20,850 $434
Low 80% $31, 100 $648
Moderate 120% $46,700 $973
The law requires that any "new or substantially rehabilitated
housing" must remain affordable to low/mod households for 15-30
years. This requires the Agency to impose rent restrictions or
resale controls to ensure long-term affordability.
There is no definition of substantial rehabilitation but paint-
up, fix-up programs are probably exempt. Other programs may also
be exempt from the restrictions on a case-by-case basis.
D. Potential Uses in Azusa
1. CoastFed
The Agency is currently constructing 141 apartment units of
which 28 units (20%) are proposed to be set aside for low
income senior citizens. The affordability controls will be
in place for thirty (30) years if the Developer secures tax
exempt financing from the Agency.
2. Senior Citizen Housing
The Agency has contemplated development of subsidized senior
housing as a future project. The Agency would acquire a 1-2
acre site and resell it to a developer at a discount in
exchange for the subsidized housing. The land write-down
would be financed from the low/mod fund.
3. Mobilehome Parks
The Agency could provide assistance with the following:
1) Low interest loans to the owners for park
improvements provided a majority of the units were
occupied by low/mod tenants and the improvemetns
directly benefitted the low/mod occupants.
2) Low interest loans, deferred loans or grants for
public improvements provided they directly improve
the park and assist low/mod tenants.
Page 4
From: Robb R. Steel, Redevelopment Director
Subject: Use of Agency Low-and Moderate-Income Housing Funds
Date: May 21, 1990
3) Rent subsidies to low/mod occupants.
4) Assistance with park acquisition.
4. Housing Rehabilitation
The Agency has intended to support rehabilitation of the
existing housing stock by the following actions:
1) Establishing a revolving fund for low interest
home rehabilitation loans.
2) Providing minor fix up grants or rebates.
3) Encouraging development or move-on of single-
family units on vacant lots.
III. SUMMARY AND CONCLUSION
Low/Mod housing funds can be used in a variety of ways to
increase or improve the City's low/mod housing stock. The key
questions for each proposed project are:
1. Does it increase or improve the supply of housing
affordable to low/mod occupants?
2 . Does the proposal constitute new or substantial
rehabilitation? If it does, then the Agency must
impose resale or rent controls on the assisted units.
3. Does the proposal have other indirect implications?
For example, if the Agency provides rent subsidies to
low/mod mobilehome tenants, what incentive does the
park owner have to limit rents absent rent control.
The foregoing report was intended to provide you with an outline
of the various ways in which the funds could be used to support
senior citizens. Before developing or selecting a specific
course of action, more research will be needed to determine the
most effective method of delivering the assistance.
RRS/tmb
EXHIBIT C
1 ORDINANCE NO. 690
2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA VERNE, COUNTY OF LOS ANGELES,
STATE OF CALIFORNIA, AMENDING THE ORDINANCE CODE OF THE CITY OF LA VERNE BY
3 ADDING DIVISION XII PROVIDING FOR MOBILEHOME RENT REVIEW
4 WHEREAS, the City of La Verne did hear public comment on the issues
surrounding mobilehome park tenancies in 1976, 1977, and 1982, and was suc-
5 cessful in facilitating the mediation of serious disputes within the commu-
nity; and
6
WHEREAS, the City Council did again hear such comment and attempted
7 mediation in 1980 and 1981, and did adopt Resolution No. 81-37, proposing me-
diation committees in mobilehome parks; and
8
WHEREAS, the City Council has heard extensive comment from mobilehome
9 park owners and mobilehome owners, and their counsel, and has solicited their
comments with respect to possible solutions to the continuing conflicts within
10 the City arising out of the relationships between park owners and home owners;
and
11
WHEREAS, substantial progress has been made through the organization
12 of mediation committees and home owners associations in the parks, and the
good faith efforts of park owners and park tenants to resolve their differ-
13 ences; and
14 WHEREAS, despite this substantial progress, unresolved disputes still
exist, and the City Council finds it necessary to exercise its police powers
15 to intervene in this situation;
16 NOW, THEREFORE, the City Council of the City of La Verne DOES FIND AND
DETERMINE that:
17
1. There is presently a shortage of spaces for the location of mobile-
18 homes in the City of La Verne. This shortage has existed for several years,
and the vacancy rate for such spaces, excluding those designed for short-term
19 tenancies, approaches zero.
20 2. Mobilehome park tenants are in a particularly poor bargaining po-
sition with respect to their landlords because of their substantial investments
21 in their mobilehomes , the high cost of relocation, including the movers fees,
installation charges, permits, landscaping and site preparation, the losses
22 incurred when space improvements must be abandoned, and the lack of alternative
sites. In addition, increases in space rent tend to reduce the sale value of
23 the mobilehome in situ.
24 3. Because of the space shortage, unregulated rents will be a hardship
on vulnerable portions of the City's population, including the elderly, the
25 disabled, and those of low income, forcing them to leave the City or divert
so much of their income to housing that they cannot maintain a decent standard
26 of living;
27 NOW, THEREFORE, the City Council of the City of La Verne DOES ORDAIN
as follows:
28
Section 1. That the Ordinance Code of the City of La Verne is hereby
.79 1-+y Pari4 nn a new H i vi G i nn: ni;Vi.R i nn XT T . Mohi lehome Rent Review, to
read as follows:
30
31 Chapter 1
Mobilehome Rent Review
32
(Rev. 10-15-84)
1 12100 PURPOSE. It is the purpose of this Chapter to facilitate the estab-
lishment of fair and reasonable rents within mobilehome parks within the
2 City of La Verne. Furthermore, it is the intent of this Chapter to maintain
the character and quality of the City's mobilehome parks, providing park
3 owners reasonable rent increases and park residents the security of rent
review.
4
12101 DEFINITIONS. For the purposes of this Chapter, the following words,
5 terms, and phrases shall be defined as follows:
CAPITAL IMPROVEMENT shall mean any addition or betterment made to a mobile-
6 home park which consists of more than mere repairs or replacements of exist-
ing facilities or improvements and which has a useful life of five (5) or
7 more years.
MOBILEHOME shall mean a vehicle as defined in the Mobilehome Residency Law
8 as per Civil Code Section 798.3.
MOBILEHOME PARK shall mean any area of land within the City of La Verne
9 where two (2) or more mobilehome spaces are rented, or held out for rent, to
accomodate mobilehomes used for human habitation.
10 MOBILEHOME SPACE shall mean the site within a mobilehome park intended,
designed, or used for the location or accomodation of a mobilehome and any
11 accessory structures or appurtenances attached thereto or used in conjunction
therewith.
12 OWNER shall mean the owner or operator of a mobilehome park or an agent or
representative authorized to act on said owner's or operator's behalf in con-
13 nection with the maintenance or operation of such park.
REHABILITATION WORK shall mean any renovation or repair work completed on
14 or in a mobilehome park which was performed in order to comply with the
direction or order of a public agency, or to repair damage resulting from
15 fire, earthquake, or other casualty.
RENT shall mean the consideration paid for the use or occupancy of a mobile-
16 home space.
RENT ARBITRATION ADMINISTRATOR (RAA) shall mean the City Manager or his
17 designee.
TENANCY shall mean the right to use or occupy a mobilehome space.
18 TENANT shall mean a person who has a tenancy in a mobilehome park.
19 12102 RENT ARBITRATION ADMINISTRATOR. In addition to the specific duties
described elsewhere in this Chapter, the RAA shall:
20 a) Make any recommendation he or she deems appropriate to the City Council
regarding the implementation of this Chapter;
21 b) Adopt, subject to City Council approval, procedures and guidelines for
the implementation of this Chapter;
22 c) Select an arbitrator for any proceeding under Section 12108.
23 12103 EXISTING LEASES. Rents agreed to under a written agreement in exist-
ence on June 1, 1984, may be collected until the expiration of the lease
24 agreement.
•
25 12104 BASE RENT.
a) The initial base rent per month for each space shall be the rent in
26 effect for that space on June 1, 1983, subject to the following adjustments:
1) An increase of no more than seven percent (7%) per annum between
27 June 1, 1983, and the effective date of this Chapter.
2) Increases equal to a proportionate share of an increase in a City
28 special tax, benefit assessment, or service charge, and including, but not
limited to: paramedic fees and lighting and landscaping assessment districts
79 uua�:... 1, -19-C3, ...: ! •t c ..fF'....tiv— �7��tea nF 4414q
30 b) Any mobilehome space that has a rent of one hundred fifty dollars ($150)
or less at the effective date of this Chapter shall not be subject to this
31 Section 12104. The base rent for these spaces shall be the rent charged at
the effective date of this Chapter.
32 c) No owner shall demand or accept or retain rent for any space exceeding
the base rent unless an increase has been authorized under Section 12106,
ORD. NO. 690 -2-
(Rev. 10-15-84)
1 12107, or 12108, or a vacancy increase has been authorized under Section 12109
or the space is exempt under Section 12105.
2
12105 SPACE RENT AGREEMENTS.
3 a) Any mobilehome park which provides a rental agreement meeting the cri-
teria set forth in this Section shall be exempt from the provisions of this
4 Chapter for the duration of such agreement.
b) The exemption provided in subsection (a) herein shall be effective only
5 if the space rental agreement meets the following criteria:
1) The agreement must establish a space rent schedule for a minimum
6 of two (2) years from the effective date of the agreement.
2) The agreement need not be a formal lease or follow any prescribed
7 format but the space rent schedule must be binding upon both the park owner
and residents for its duration. The agreement may contain such other provi-
8 sions as may be agreed upon by the parties to it.
3) The agreement must by voluntarily consented to by sixty-seven per-
9 cent (67%) of the mobilehome rental spaces within the park. This consent
shall be evidenced by the signature of at least one adult tenant from each
10 space, constituting the sixty-seven percent (67%) , on lease agreements or on
such form as may be required by the RAA. The consent form shall be circu-
11 lated or provided for signature only in accordance with such rules and regu-
lations as may be established by the RAA.
12 c) This exemption shall terminate upon the expiration of the space rental
agreement unless such agreement is renewed or extended by mutual agreement
13 of the park owner and sixty-seven percent (67%) of the residents. Any such
renewal or extension of such agreement must meet the criteria set forth in
14 subsection (b) of this section. Upon termination of the exemption, the
mobilehome park shall comply with this Chapter. The rent last charged under
15 the lease agreement shall be the base rent.
16 12106 PERMITTED INCREASES WITHOUT MEDIATION OR ARBITRATION.
a) An owner may file with the RAA a rent increase notification for one or
17 more mobilehome spaces for his/her review and certification.
b) Upon receipt of a rent increase notification, the RAA shall review it
18 and shall certify the increase and notify the affected tenants if the RAA
finds that:
19 1) There have been no rent increases for the subject spaces for the
past twelve (12) months; and
20 2) There have been no decreases in services provided the tenants ex-
cept in compliance with Section 12110 of this Chapter; and
21 3) The proposed rent increase is no greater than:
A) The lesser of seven percent (7%) or the increase in the United
22 States Department of Labor Consumer Price Index (CPI-U) for the Los Angeles
Long Beach Metropolitan Area for the twelve (12) month period ending ninety
23 (90) calendar days prior to the date of receipt of the notification by the
RAA.
24 B) Any increase covering only the proportionate share of:
1) An increase of due under a land lease in existence on
25 June 1, 1983; and/or
2) An increase in a City special tax, benefit assessment, or
26 a service charge, excluding water, sewer and trash, and including, but not
limited to: paramedic fees and lighting and landscaping assessment districts.
27
12107 PERMITTED RENT INCREASES BASED UPON MEDIATION. In the event a proposed
28 rent increase does not meet the criteria set forth in Section 12106, a park
owner may file a request for mediation with the RAA for one or more spaces
,9
L park �i_ ._ _ _ tt r., .,,.�. �hm7 1 hA limited to one application
uyu ..... .,...�.... ..........-__ __ _-- _ .._. ._
30 per park per year under this section.
a) An application for a rent increase pursuant to this section shall be
31 filed upon a form prescribed by the. RAA. Said application shall specify the
address and numbers of all spaces for which rent in requested to be increased.
32 All applications shall be made under penalty of perjury and supporting docu-
ments shall be certified or verified by the RAA.
ORD. NO. 690 -3-
(Rev. 10-15-84)
1 b) Upon receipt of the application, the RAA shall mail a notice to the
affected tenants at the mobilehome spaces designated in the application.
2 Said notice shall include the amount of the requested rent increase and a
brief summary of the owner's justification for the request.
3 c) Upon notification of the proposed increase, a park mediation committee
shall be established for the purposes of meeting and conferring on the rental
4 increase, endeavoring to reach a mutual understanding of one another's view-
point, and negotiating an agreement in conjunction therewith.
5 The Park Committee shall be composed of two (2) members or representatives
of the park owner and two (2) members elected by secret ballot of the affected
6 tenants of the proposed rent increase. The fifth member of the park committee
shall be a mediator appointed by the unanimous vote of the other four (4) mem-
7 bers. In the event the members appointed by the park owner and elected by
the tenants cannot agree on the fifth member within ten (10) days after their
8 appointment, they shall request, in writing, that the RAA appoint a fifth
member. Any fees payable to the mediator, whether he/she is appointed by the
9 Park Mediation Committee or the RAA, shall be borne equally by the park owner
and the affected tenants.
10 d) The Park Committee shall establish procedures for the conduct of its
affairs not otherwise in conflict with the provisions of this Chapter, in-
11 cluding, but not limited to, the number of affirmative votes it may require
to take or effect any action.
12 e) If the Park Committee negotiates a proposed agreement, written notice
thereof shall be given to all of the affected tenants of the park and the park
13 owner. Within ten (10) days of such notice, the affected tenants shall take a
secret ballot, with one vote per space.
14 f) If at least sixty-seven percent (67%) of the affected mobilehome spaces
of the park concur with, and the park owner approves the agreement, then it
15 shall be deemed approved. If fewer than sixty-seven percent (67%) of the
affected mobilehome spaces of the park reject the agreement, or the park
16 owner rejects the agreement, then it shall be deemed disapproved.
g) If the agreement is rejected as provided under Section 12107 (f) of
17 this Chapter, the Park Committee shall meet within ten (10) days after such
rejection for the purpose of renegotiating another proposed agreement. If
18 such a proposed agreement is renegotiated, written notice thereof by the Park
Committee shall be given and a secret ballot by the affected tenants shall be
19 taken in accordance with the provisions of Section 12107 (f) of this Chapter.
h) All applications submitted under this section are considered denied if:
20 1) The Park Committee fails to negotiate a proposed agreement relating
to a rental increase within thirty (30) days after the appointment of the
21 fifth member; or
2) The Park Committee fails to renegotiate a proposed agreement relat-
22 ing to a rental increase within thirty (30) days after the agreement is re-
jected; or
23 3) After developing a renegotiated agreement, the affected tenants and
park owners fail to ratify it within fifteen (15) days.
24 When mediation fails, an application may be submitted by the park owner
for arbitration pursuant to Section 12108 of this Chapter.
25
12108 PERMITTED INCREASES BASED UPON ARBITRATION.
26 a) If a proposed rent increase application is denied pursuant to Section
12106, or a mediated settlement per Section 12107 cannot be reached, an owner
27 may file with the RAA a rent increase application for one (1) or more mobile-
home spaces for arbitration. An owner shall be limited to one (1) application
28 for arbitration within any twelve (12) month period.
b) An application for a rent increase pursuant to this section shall be
29 filed u n a form presnrihar7 hu the RAA and shall be accompanied by the pay-
ment of a fee of ten dollars ($10) per space for which an application for a
30 rent increase is made. Such fee may be reviewed and adjusted by resolution
of the City Council. Half of said fee may be charged to the tenants of the
31 affected spaces in the form of a one-time pass-through by the park owner.
Any surplus of the fee over two-thirds (2/3) of the arbitrator's fee shall
32 be refunded at the end of the arbitration. Said application shall specify
ORD. NO. 690 -4-
(Rev. 10-15-84)
1 the address of the mobilehome park, the space number or numbers for which
2 rent is requested to be increased, the amount of the requested rent increase,
and the facts supporting the requested increase.
3 c) The applicant shall produce, at the request of the arbitrator, any rec-
ords, receipts, or other documents that the arbitrator may deem necessary.
4 The application shall be made under penalty of perjury and supporting documents
shall be certified or verified as requested by the arbotrator.
5 d) The arbitrator shall determine within sixty (60) days after receipt of
a rent increase application whether said application is complete. If the ar-
6 bitrator determines that an application is not complete, the arbitrator shall
notify the applicant in writing as to what additional information is required.
7 e) Upon receipt of a rent increase application, the RAA shall mail a notice
to the affected tenants at the mobilehome spaces designated in the application.
8 The notice shall include the amount of the requested rent increase, a brief
summary of the owner's justification for the request, notice that any support-
ing9 documents may be inspected at City Hall, notice of the tenant's right to
submit written statements, photographs or documents relating to the applica-
tion10 within thirty (30) days after the date the notice is mailed, and the
address where such statements, photographs, or documents may be mailed or
11 delivered. All written statements submitted by the tenants for consideration
by the arbitrator shall be signed and submitted under penalty of perjury.
12 The arbitrator shall hold a hearing on said application within sixty (60)
days after such application is determined to be complete. Notice of the time,
13 date, and place of the hearing shall be sent to the applicant and the affected
tenants at the mobilehome spaces designated in the application at least ten
14 (10) days period to the hearing.
f) At the hearing, the applicant and the affected tenants may offer any
15 testimony that is deemed relevant by the arbitrator to the requested rent in-
creases. The applicant shall produce any records, receipts, or other docu-
ments16 that the arbitrator may deem necessary to approve a rent increase. The
applicant and affected tenants may offer documents, written declarations, or
17 other written evidence for the first time at the hearing only if good cause
is shown why such evidence was not filed prior to the hearing. Formal rules
18 of evidence shall not be applicable to such proceedings. Within fifteen (15)
days after the close of the hearing, the arbitrator shall make his/her deter-
19 mination, pursuant to the standards established by subsection (g) of this
section, approving or disapproving a rent increase for the mobilehome space
20 or spaces specified in the rent increase application.
g) The arbitrator shall approve such rent increase as he/she determines to
21 be just, fair, and reasonable. The arbitrator shall consider, but not be
limited to, the following factors in making such determinations:
22 1) Changes in the Consumer Price Index for All Urban Consumers for the
Los Angeles-Long Beach Metropolitan Area, published by the United States Bureau
23 of Labor Statistics for the twelve (12) month period ending ninety (90) calen-
dar days prior to the application for the proposed increase.
24 2) The rent lawfully charged for comparable mobilehome spaces in the
City of La Verne.
25 3) The history and pattern of all prior rent increases of the park, and
any prior arbitration proceedings.
26 4) The completion of any capital improvements or rehabilitation work
related to the mobilehome space or spaces specified in the rent increase ap-
27 plication, and the cost thereof, including such items of cost, including
materials, labor, construction interest, permit fees, and such other items as
28 the arbitrator deems appropriate.
5) Changes in property taxes and other taxes related to the subject
99 mobilehome park. r
6) Changes in the rent paid by the a�,yliccu t �:%� the lease of the lend
30 on which the subject mobilehome park is located.
7) Changes in the utility charges for the subject mobilehome park paid
31 by the applicant and the extent, if any, of reimbursement from the tenants.
8) Changes in reasonable operating and maintenance expenses.
32 9) The amount and quality of services provided by the applicant to the
affected tenant.
ORD. NO. 690 -5-
(Rev. 10-15-84)
10) The need for rehabilitation work.
1 11) Tenant comments regarding the proposed increase.
h) The arbitrator shall not consider the following factors in rent arbitra-
2 tion hearings:
1) Any expense for which the park owner is reimbursed.
3 2) Attorneys fees and costs incurred in proceedings under this Chapter.
i) The Arbitrator may provide that an increase in rent or a portion of an
4 increase in rent granted be limited to the length of time necessary to allow
the park owner to reasonably amortize the cost of a capital improvement, in-
5 cluding interest. Such increase granted as a result of the capital improve-
ment shall not continue beyond the time necessary for reasonable amortization
6 of the cost of such improvement.
j) Notice of the arbitrator's determination shall be mailed to the appli-
7 cant and all affected tenants at the mobilehome spaces designated in the ap-
plication. The determination of the arbitrator shall be final.
8 k) If the arbitrator is unable to act and make his/her final determination
on a completed rent increase application within seventy-five (75) calendar
9 days after the application is deemed complete by the RAA, the arbitrator may
approve such interim rent increase for the mobilehome space or spaces speci-
10 fied in said application as clearly appears warranted when the factors set
forth in subsection (g) of this section are considered, based upon the facts
11 stated in the application, any written statements or documents filed with the
arbitrator by the affected tenants, and any other facts known to the arbitrator.
12 An approved interim rent increase shall expire on either: 1) the last day of
the month within which the arbitrator makes his/her final determination dis-
13 approving a rent increase; or 2) the effective date of a rent increase which
is approved by a final determination of the arbitrator.
14 1) The time within which the arbitrator may conduct a hearing or make his/
her determination may be extended twice by the arbitrator for periods of time
15 not to exceed sixty (60) days each if the arbitrator considers and, if grounds
exist, grants an interim rent increase pursuant to subsection (k) of this sec-
16 tion.
17 12109 VACANCY INCREASES. When a mobilehome space becomes vacant or the owner-
ship of a mobilehome is transferred, the park owner may raise the monthly rent
18 no greater than twenty-five dollars ($25) but no further increases may occur
on that space for twelve (12) months. A change in ownership shall not include
19 any of the following:
a) Transfers to a conservator of the person and/or of the estate of a tenant;
20 b) Transfers which take effect upon the death of a spouse;
c) Transfers to a spouse, or former spouse in connection with a property
21 settlement agreement or decree of dissolution of marriage or legal separation;
or
22 d) The creation, transfer, or termination solely between spouses, of any
co-owner's interest.
23
12110 TERMINATION OF SERVICES. No mobilehome park owner shall reduce or
24 eliminate any service to any mobilehome space so long as this Ordinance is in
effect, unless and until a proportionate share of the cost savings resulting
25 from such reduction or elimination is passed on to the resident in the form of
a decrease in space rent. If a mobilehome park owner who provides utility
26 services reduces or eliminates such service by separate metering or other law-
ful means of transferring to the resident the obligation for payment for such
27 services, the cost savings shall be deemed to be the cost of such transferred
utility service for the twelve (12) months prior to the installation and use
28 of the submetering system.
For the purposes of this section in determining cost savings to be passed
29 nn to the resident in the form of decreased rent, the cost of installation of
separate utility meters, or similar costs to the mobilehome park owner to
30 shift the obligation for payment of utility costs to the resident, shall not
be considered. Nothing stated herein shall be construed to prohibit or pre-
31 vent the consideration or inclusion of such costs, within an application to
the Board for arbitration.
32
ORD. NO. 690 -6-
(Rev. 10-15-84)
1 12111 ANNUAL REVIEW. In January of each year, after 1985, the City Council
shall hold a public hearing to consider the report of the RAA on the operation
2 of this Chapter during the preceding year, and the comments of the public.
The purpose of the hearing shall be to determine what revisions, if any, may
3 be appropriate.
4
•
Section 2. The Mayor shall sign and the City Clerk shall certify to the
5 passage and adoption of this Ordinance and shall cause the same to be published
and posted pursuant to the provisions of law in that regard, and this Ordinance
6 shall take effect thirty (30) days after its final passage.
7 APPROVED AND ADOPTED this 15th day of October , 1984.
8
9
10
11
12
Mayor of the City of La Verne
13
ATTEST:
14
15
16
17 City Clerk
18
19
20
21
22
23
24
25
26
27
28
30
31
32
ORD. NO. 690 -7-
(Rev. 10-15-84)
STATE OF CALIFORNIA )
2 COUNTY OF LOS ANGELES )
3 CITY OF LA VERNE )
4
I, N. KATHLEEN HAMM, City Clerk of the City of
5
La Verne, California, do hereby certify that the fore-
6 �
going Ordinance No. 690 was introduced at a
7
regular meeting of the City Council of said City duly
8
held on the 1st day of October , 19 84 , and
9
was thereafter, at a regular meeting of
10
said Council duly held on the 15th day of October
11
19 84 , duly passed and adopted by said City Council
12
and thereupon duly signed by the Mayor of said City,
13
attested by the City Clerk of said City, and passed and
14
adopted by the following vote:
15
AYES: COUNCILMEN Walters, Rodriguez, Gatti, Harvey,
16 and Mayor Blickenstaff.
17 NOES: • COUNCILMEN None.
18 ABSENT: COUNCILMEN None. •
19 .
20 N. KATHLEEN HAMM I
CITY CLERK of the •
21 CITY of LA VERNE
DATE: 10-16-84 C2611- Q_
22 (Seal)
23 By Sonya Whatley
Deputy City Clerk
24
25
26
27
28
29
30
31
32
#123
-44
1 ORDINANCE NO. 780
2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA VERNE,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AMENDING THE
3 LA VERNE MUNICIPAL CODE BY REVISING CERTAIN PROVISIONS
OF SECTION 9.16 PROVIDING FOR MOBILEHOME RENT REVIEW
4
5 WHEREAS, suggestions for amendments to the
Mobilehome Rent Review Ordinance were solicited from
6 mobilehome park owners, operators and tenant
representatives; and
7
WHEREAS, said suggestions were considered by the
8 Mobilehome Park Advisory Committee on February 21, 1989;
9 NOW, THEREFORE, the City Council of the City of
La Verne DOES ORDAIN as follows:
10
Section 1. The La Verne Municipal Code is hereby
11 amended by revising Section 9.16.070(B) (3) (b) (ii) to
read as follows:
12
An increase in a governmental imposed
13 special tax, benefit assessment, or
service charge, excluding water, sewer,
14 and trash and including, but not limited
to, paramedic fees and lighting and
15 landscaping assessment districts, and/or
16
Section 2. The La Verne Municipal Code is hereby
17 amended by revising Section 9.16.090(B) to read as
follows:
18
An application for a rent increase
19 pursuant to this section shall be filed
upon a form prescribed by the RAA and
20 shall be accompanied by the payment of a
fee of ten dollars per space for which an
21 application for a rent increase is made.
Such fee may be reviewed and adjusted by
22 resolution of the City Council. Half of
the fee may be charged to the tenants of
23 the affected spaces in the form of a
one-time pass-through by the park owner.
24 Any surplus of the fee over two-thirds of
the arbitrator's fee shall be refunded at
25 the end of arbitration. Any arbitration
costs which exceed the initial deposit fee
26 shall be borne equally by the park owner,
the affected tenants, and the City. The
27 application shall specify the address of
the mobilehome park, the space number or
28 numbers for which rent in requested to be
increased, the amount of the requested
'29 rent increase, and the facts supporting
the requested increase.
30
31 Section 3. The La Verne Municipal Code is hereby
amended by deleting Section 9.16.120 in its entirety.
32
1 Section 4. The Mayor shall sign and the City
Clerk shall certify to the passage and adoption of this
2 Ordinance and shall cause the same to be published and
posted pursuant to the provisions of law in that regard
3 and this Ordinance shall take effect thirty (30) days
after its final passage.
4
APPROVED AND ADOPTED this 20th day of March, 1989.
5
6
7
/s/ JON BLICKENSTAFF
8 Mayor of the City of La Verne
9 ATTEST:
10
11
/s/ N. KATHLEEN HAMM
12 City Clerk
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
ORD. NO. 780 -2-
1 STATE OF CALIFORNIA
COUNTY OF LOS ANGELES ) ss.
2 CITY OF LA VERNE
3
4
I, N. KATHLEEN HAMM, City Clerk of the City
5
of La Verne, California, do hereby certify that the
6
foregoing Ordinance No. 780 was introduced at a
7
regular meeting of the City Council of said City
8
duly held on 3-6-89 day of March, 1989, and was
9
thereafter, at a regular meeting of said Council
10
duly held on the 20th day of March, 1989, duly
11
passed and adopted by the said City Council and
12
thereupon duly signed by the Mayor of said City,
13
attested by the City Clerk of said City, and passed
14
and adopted by the following vote:
15
16
17 AYES: COUNCILMEN: Rodriguez, Gatti, Harvey,
and Mayor Blickenstaff.
18
NOES: COUNCILMEN: None.
19
ABSENT: COUNCILMEN: Walters.
20
ABSTAIN: COUNCILMEN: None.
21
22 N. KATHLEEN HAMM, CMC
CITY CLERK of the
23 CITY OF LA VERNE
24 }�
25 By Lupe Estrella
Deputy City Clerk
26
DATE: March 21, 1989
27
28 (Seal)
29
30
31
32
1 ORDINANCE NO. 737
2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA VERNE,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AMENDING THE
3 ORDINANCE CODE OF THE CITY OF LA VERNE BY REVISING SECTION
9 . 16 .080 (F) OF DIVISION 9 , PROVIDING FOR MOBILE HOME RENT
4 REVIEW (PERMITTED INCREASED BASED UPON ARBITRATION)
5 The City Council of the City of La Verne DOES ORDAIN
6 as follows:
Section 1 . That the Ordinance Code of the City of
8 La Verne is hereby amended by revising section 9. 16.080 (F) to
9 read as follows:
10 F. If at least sixty-seven percent (67%) of
11 the affected mobile home spaces of the park
concur with, and the park owner approves the
12 agreement, then it shall be deemed approved.
If more than 33% of the affected mobile home
13 spaces of the park reject the agreement or the
park owner rejects the agreement, then it shall
14 be deemed disapproved.
15 Section 2. The Mayor shall sign and the City Clerk
shall certify to the passage and adoption of this Ordinance
16 and shall cause the same to be published and posted pursuant
17 to the provisions of law in that regard and this Ordinance
18 shall take effect thirty (30) days after its final passage.
19 APPROVED AND ADOPTED this 2nd day of February, 1987.
20
21
23 , ayo o he Cj#,f La Verne
24 ATTEST:
25
26
•
City Clerk
27
28
29
30
31
32
1 ORDINANCE NO. 730
2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA VERNE,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, REVISING
3 SECTION 9. 16 .070 OF CHAPTER 9 . 16, MOBILE HOME RENT
REVIEW, OF THE LA VERNE MUNICIPAL CODE TO PROVIDE FOR
4 PASS THROUGH OF MIRAMAR CHARGES
5 The City Council of the City of La Verne DOES
6 ORDAIN as follows:
7 Section 1 . That the Municipal Code of the City of
8 La Verne is hereby amended by revising Section
9 . 16.070 (B) (b) (iii) to read as follows:
9
10 b. Any increase covering only the
11 proportionate share of:
i. An increase due under land lease in
12 existence on June 1 , 1983, and/or
ii. An increase in a city special tax,
13 benefit assessment, or a service charge,
excluding water, sewer and trash, and 14 in-
cluding, but not limited to, paramedic fees
and lighting and landscaping assessment 15 dis-
tricts, and/or
iii. Any capital improvement fee or ser-
vice16 charge made in connection with the
Miramar Filtration Plant and related
17 improvements.
18 Section 2. The Mayor shall sign and the City
19 Clerk shall certify to the passage and adoption of this
20 Ordinance and shall cause the same to be published and
posted pursuant to the provisions of law in that regard
21 and this Ordinance shall take effect thirty (30) days
22 after its final passage.
23
APPROVED AND ADOPTED this 17th day of November,
24 1986.
25
26
27
Mayor of the City of La Verne
28
ATTEST:
29
30
31 City Clerk
32
•
1 ORDINANCE NO. 715
2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
3 AMENDING THE ORDINANCE CODE OF THE CITY OF LA VERNE BY
REVISING SECTION 12106 OF DIVISION XII , PROVIDING FOR
4 MOBILE HOME RENT REVIEW
5
The City Council of the City of La Verne DOES
6 ORDAIN as follows :
7
8
Section 1 . That the Ordinance Code of the City
9 of La Verne is hereby amended by revising subsection
10 "a" to Section 12106 , to read as follows:
11
a) No proposed rent increase shall
12 take effect until sixty (60) days after
the owner has filed with the RAA a rent
13 increase notification for all mobile
home spaces subject to the increase.
14 The RAA shall review the increase for
certification before its effective date.
_ 15
16 Section 2 . The Mayor shall sign and the City
i7 Clerk shall certify to the passage and adoption of
this Ordinance and shall cause the same to be pub-
18 lished and posted pursuant to the provisions of law in
19 that regard and this Ordinance shall take effect
20 thirty (30) days after its final passage.
21 APPROVED AND ADOPTED this 18th day of February,
22 1986 .
23
24
26 /M/Yor of the City o/(Lai Verne:
27 ATTEST :
28
- s �4
29 City Clerk
30
31
321
1
ORDINANCE NO. 697
2
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
3 LA VERNE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
AMENDING THE ORDINANCE CODE OF THE CITY OF LA VERNE
4 BY REVISING SECTION 12106 OF DIVISION XII , PROVIDING
FOR MOBILEHOME RENT REVIEW
5
6 The City Council of the City of La Verne DOES
ORDAIN as follows:
7
Section 1. That the Ordinance Code of the
8 City of La Verne is hereby amended by adding
subsection "c" to Section 12106 , to read as follows:
9
c) After approval of a rent increase
10 under this Section 12106, there shall
be no further rent increases of any
11 kind for the subject spaces for twelve
(12) months , except a vacancy increase
12 as permitted under Section 12109 .
13 Section 2. The Mayor shall sign and the City
Clerk shall certify to the passage and adoption of
14 this Ordinance and shall cause the same to be
published and posted pursuant to the provisions of
15 law in that regard and this Ordinance shall take
effect thirty (30) days after its final passage.
16
APPROVED AND ADOPTED this 1st day of April,
17 1985.
18
19
20
/s/ JON BLICKENSTAFF
21 Mayor of the City of La Verne
22 ATTEST:
23
24 /s/ N. KATHLEEN HAMM
City Clerk
25
26
27
28
29
30
31
32
t, r.
RECEIVEu
JUN - 2 rte.
EXHIBIT D
ORDINANCE NO. 87-0228
An ordinance amending Title 8 of the Los Angeles County
Code , relating to mobilehome park regulation.
The Board of Supervisors of the County of Los Angeles
ordains as follows :
SECTION 1 : Chapter 8 . 57 is added to Division 3 of Title
8 of the Los Angeles County Code to read:
MOBILEHOME PARK REGULATION
SECTIONS : Page,
2 : STATEMENT OF PURPOSE 3
• 3 : DEFINITIONS • - • •
(a) "Allowable Legal Expense" 4
( b) "Base Rent" 4
(c ) "Base Year" 4
(d) "Capital Improvements" 4
(e) Mobilehome Park Rent Adjustment
Commission of "Commission" 5
( f) "CPI" 5
( g) "CPI Adjustment Period" 6
(h) "Gross Income" 6
(i) "Housing Services" 7
( j) "Mobilehome" 7
(k) "Mobilehome Park" 8
( 1) "Mobilehome Park Owner or 'Owner '" . . . 8
(m) "Mobilehome Tenant or 'Tenant " 8
(n) "Operating Expenses" 8
4: EXEMPTIONS 11
t
2
SECTIONS (Continued)
Page
5 : MOBILEHOME PARK RENT ADJUSTMENT COMMISSION. 13
6 : POWERS AND DUTIES OF THE COMMISSION 14
7 : LEGALITY OF INCREASES 14
8 : DETERMINATION OF RENT INCREASES 15
9 : CAPITAL IMPROVEMENTS PASS-THROUGH 19
10 : INITIATION OF- COMMISSION REVIEW . . . . 21
11 : CONDUCT OF THE HEARING 24
12: STANDARDS OF REVIEW 25
13 : DECISION OF THE COMMISSION 28
14 : TENANT'S RIGHT OF REFUSAL �9
15 : RETALIATORY EVICTION �9
16 : VIOLATION-PENALTY 30
17 : CIVIL REMEDIES 30
18 : TERMINATION 31
19 : REVIEW BY THE BOARD OF SUPERVISORS 31
20: PROCEDURAL IRREGULARITIES 31
21 : NOTICE TO NEW AND PROSPECTIVE TENANTS . . . 32
22: GUIDELINES 32
23: FEES AND ASSESSMENTS 32
24: SEVERABILITY 33
3
SECTION 2 : STATEMENT OF PURPOSE
There is presently within the County of Los Angeles a
shortage of spaces for the location of mobilehomes . Because of
this shortage , there is a low vacancy rate and rents are pre-
sently rising rapidly and causing concern among a substantial
number of Los Angeles County mobilehome park residents . Because
- of the high cost of moving mobilehomes ; the potential for damage
resulting therefrom; the requireme: :s relating to the installa-
tion of mobilehomes , including permits , landscaping. and site prep- •
aration ; the lack of alternative homesites for mobilehome
residents ; and the substantial investment of mobilehome owners in
such homes , a virtual monopoly exists in the rental of mobile-
home park spaces , creating a situation where park owners have
unbridled discretion and ability to exploit mobilehome park
tenants . For these reasons , among others , the Board of
Supervisors finds and declares it necessary to protect the owners
and occupiers of mobilehomes from unreasonable rent increases ,
while at the same time recognizing the need of park owners to
receive a fair return on their property and rental income suf-
ficient to cover increases in the costs of repairs , maintenance ,
insurance , employee services , and additional amenities , and other
costs of operation .
4
SECTIOJ 3 : DEFINITIONS
(a ) "Allowable Legal Expenses" : Attorneys fees
and costs incurred in connection with successful good faith
attempts to recover rents owing and successful good faith
unlawful detainer actions not in derogation of applicable
law, to the extent same are not recovered from Tenants .
Attorney ' s fees and costs incurred in proceedings before the
Commission , or in connection with the civil actions against
the Commission, are n allowa'ble' as Operating Expenses .
( b) "Base Rent" : Base Rent is the Space Rent
charged on December 31 , 1984 , as adjusted pursuant to
section 8 for the period between the date and the effective
date of this ordinance .
(c ) "Base Year" : For purposes of this ordinance ,
"Base Year" shall mean the calendar year , 1985 .
(d ) "Capital Improvements" : The Owner' s cost of
constructing new improvements or replacing old improvements
in the Mobilehome park , subject to the following limitations :
( 1 ) The improvement must have a life expec-
tancy of five (5) years or more and must be
treated as Capital Improvements for Federal
and State income tax purposes and may not be
deducted for such tax purposes as expenses .
(2) Normal routine maintenance and repair is
not a Capital Improvement.
7
( 3 ) Insured repairs and replacement are not
Capital Improvements .
( 4 ) The improvements must be permanently
fixed in place or relatively immobile.
"Capital Improvements" include construction ,
installation , or replacement of: a clubhouse or portions
thereof , laundry facilities or other common area facilities ,
swimming pool , sauna or hot tub , or other recreational amen-
ities , streets and drivewayi, sec_�rit •
y gatea�, outdoor or
common area lighting, retaining walls , sewer, electrical ,
plumbing, water, or television reception systems , sprinkler
systems , any similar improvement which represents an addi-
tion to or an upgrading of existing improvements , or those
improvements approved by 50% + 1 of the Tenants .
( e) "Commission" : The Mobilehome Park Adjustment
Commission as established by this ordinance .
( f) "CPI" : The Consumers ' Price Index (All Items)
prepared by Bureau of Labor Statistics for the Los Angeles -
Long Beach - Anaheim area relating to all urban consumers .
It' the method of calculating the CPI is substantially revised after
the adoption of this ordinance , the method in effect upon adoption
of this ordinance shall continue to be used or the revised CPI
snail be adjusted by the Auditor-Controller to correspond to that
method .
6
( g) "CPI Adjustment Period" : The Auditor-Controller
shall calculate and furnish a figure constituting the CPI change
for use as the basis of a requested rent increase. Such figure
need only be based upon available data . This figure shall be
based on the changes in the CPI during the last available twelve
( 12) month period for which information is available from the Bureau
of Labor Statistics prior to the effective date of the Base Rent
or current Space Rent .
(h) "Gross Income" : Gross in,ome •incluc�s the
following:
( 1 ) Gross rent , computed as gross rental
income at 100% paid occupancy, plus
(2) interest from rental deposits ,
unless directly paid by the Owner to the
Tenant ( interest shall be imputed at the
rate of 5}% of all deposits , unless such
deposits earn greater interests ) , plus
( 3) income from laundry facilities ,
cleaning fees or services , garage and
parking fees , plus
( 4) all other income or consideration
received or receivable for, or in connec-
tion with the Housing Services , minus
(5 ) uncollected rents due to
7
vacancy and bad debts to the extent that
the same are beyond the Owner's control .
Uncolle :ed rents in excess of 3% of
gross rents shall be presumed to be
unreasonable , unless established other-
wise . Where uncollected rent must be
established , the average of the preceding
three years experience shall be used , or
other comparable method.
( i ) "Housing Services" : Services provided by the
Owner related to the use or occupancy of a Mobilehome space ,
including, but not limited to , water and sewer, natural gas ,
electricity , refuse removal , management and administration
( including employee salaries and fringe benefits) , main-
tenance and repairs , supplies , advertising, recreation faci-
lities , laundry facilities , parking, security services ,
insurance, property taxes , governmental assessments , and
other costs reasonably attributable to the operation of the
park . The term "Housing Services" shall not include legal
fees or mortgage payments , whether for principal , interest ,
or both .
( j) "Mobilehome" : A structure designated or designed
for human habitation , transported over the highways to a permanent
occupancy site , and installed on the site either with or without
8
a permanent foundation . "Mobilehome" includes a manufactured
home , as defined in the Health and Safety Code , but does not
include either a recreational vehicle or a commercial coach ,
as they are defined in the Health and Safety Code .
( k ) "Mobilehcme Park" : An area of land where two or
more Mobilehome spaces are rented or leased out for Mobilehomes
used as residences . "Mobilehome Park" does not include develop-
tents which sell lots for Mobileho:_i or which provide ' con-
dominium ownership of such lots , even if one or more- homes' - •
in the development are rented or leased out .
( 1) "Mobilehome Park Owner or 'Owner" : The Owner ,
lessor , operator, or manager of a Mobilehome Park in the County
of Los Angeles .
(m) "Mobilehome Park Tenant or 'Tenant ' " : Any person
entitled to occupy a Mobilehome which is located within a Mobile-
home Park in the County of Los Angeles .
( n) "Operating Expenses" :
( 1 ) "Operating Expenses" shall include the
following :
( i ) Real property taxes ,
( ii ) utility costs ,
( : ii ) management expenses
( contracted or Owner performed) ,
including necessary and reasonable
9
advertising, accounting , insurance ,
and other managerial expenses , and
Allowable Legal Expenses .
Management expenses are presumed to
be 5% of gross income , unless
established otherwise.
( iv) Normal repair and maintenance
expenses , including painting, normal
. :leaning, .fumigation, .landscaping,
and repair of all standard services ,
including electrical , plumbing, car-
pentry , furnished appliances ,
drapes , carpets and furniture.
( v) Owner-performed labor , which
shall be compensated at a reasonable
hourly rate , based upon documen-
tation being provided , showing the
date , time and nature of the work
performed.
( vi ) License and registration fees
required by law to the extent same
are not otherwise paid by Tenants .
( vii ) Capital expenses with a total
cost of less than $ 100 per year,
10
benefited unit , and the amortized
portion of other capital expenses
otherwise allowed by regulation.
( 2) "Operating Expenses" shall not include :
( i ) avoidable and unnecessary
expenses since the Base Year;
( ii ) mortgage principal and
interest payments ;
•
( iii ) any 'penalty, fees or interest
assessed or awarded for violation of
this or any other law;
( iv) legal fees , except as defined
in subsection (a) ;
( v) depreciation of the property ;
(vi ) any expense for which the
Owner has been reimbursed by any
security deposit , insurance settle-
ment , judgment for damages , settle-
ment or any other method ; and
( vii ) land lease payments .
(o ) "Space Rent" : The consideration on a monthly
basis , including any bonuses , benefits , or gratuities ,
demanded or received in connection with the use and occu-
pancy of a Mobilehome space in a Mobilehome Park , or for
11
Housing Services provided , but exclusive of:
( 1) Any amount paid for the use of a
Mobilehome ;
( 2) security deposits ;
( 3) user fees for services or facilities
which may be utilized at the option of the
Tenants and are not included in monthly Space
Rent ; and
• ( 4) utility charges for those - Mobilenome
Parks which bill Tenants separately whether or not
the Mobilehomes are individually metered .
SECTION 4 : EXEMPTIONS
The provisions of this ordinance shall not apply to the
following tenancies in Mobilehome Parks located in the County of
Los Angeles :
(a) Mobilehome Park spaces rented for non-residential
uses ;
(b) Mobilehome Parks managed or operated by the United
States Government, the State of California , or the County of Los
Angeles;
(c) tenancies which do not exceed an occupancy of
twenty ( 20) days and which do not contemplate an occupancy of
more than twenty ( 20) days ;
(d) tenancies for which any Federal or State law or
regulation specifically prohibits rent regulations ;
12
( e ) tenancies covered by leases or contracts which pro-
vide a certain Space Rent for at least six ( 6 ) months , but only for
the duration of such lease or contract . Upon the expiration
or other termination of such lease or contract , if such
lease or contract was entered into between January 31 , 1984 ,
and January 14 , 1986 , and if such lease or contract expires
or terminates prior to January 14 , 1993 , this ordinance
shall , immediate.ly be applicable to • the• tenancy , unless that •
lease or contract is immediately succeeded by the lease
referred to in subsection ( g) or the Tenant is offered the
lease referred to in subsection ( g) of this section;
( f) Mobilehome Parks which sell lots for factory-
built or manufactured housing, or which provide condominium
ownership of such lots , even if one or more Mobilehomes in
the development are rented or leased out ; and
( g) Mobilehome Parks that substantially conform to
the Model Mobilehome Park Lease Agreement approved by the
Board of Supervisors on January 14 , 1986 . Non-exempt
Mobilehome Parks that do not substantially conform to the
Model Mobilehome Park Lease Agreement prior to the enactment
of this ordinance , but substantially conform with that model
lease subsequent to the effective date of this ordinance
shall remain subject to this ordinance until six ( 6 ) months
from the first date of substantial conformance with that model
•
13
lease . For the purposes of this ordinance , Mobilehome Parks
that have offered the model lease , or a substantially simi-
lar lease to the Tenants therein shall be considered to be
in substantial compliance with the Model Mobilehome Park
Lease Agreement .
SECTION 5 : MOBILEHOME PARK RENT ADJUSTMENT COMMISSION
(a) There is hereby established a commission to be
• known as the "County Mobilehome P.arx Rent Adjustment Commission."
• ( b ) Each member of the Board of Supervisors shall
appoint a member to the Commission . The person appointed
by each Supervisor shall be neither Owner or Tenant.
(c) The term of office of each member of the
Commission shall be for the period of time this ordinance is
in effect , " . . .except that each member of the Board of
Supervisors may remove his or her appointed member of the
commission at any time. "
(d) The Commission shall meet at least twice every
year.
(e) Each member shall be paid $25 .00 for each day the
member attends a meeting .
( f) At its first meeting, the Commission shall elect a
chairperson and such other officers as the Commission may deem
appropriate .
14
SECTION 5 : POWERS AND DUTIES OF THE COMMISSION
Within the limitations provided by law, the Commission
shall have the following powers and duties :
(a) To receive , investigate , hold hearings on, and
pass upon all issues relating to Mobilehome Park rent stabiliza-
tion as set forth in this ordinance ;
( b) to make or conduct such independent hearings or
investigations as may appropriate to obtain such information
as is necessary . to carry out its duties ;
(c ) to adjust Space Rents either upward or downward
upon completion of its hearings and investigations ;
(d ) to render at least semi-annually a comprehen-
sive written report to the Board of Supervisors concerning
its activities , holdings , actions , results of hearings, and
all other matters pertinent to this ordinance which may be of
interest to the Board ; and
(e) to adopt , promulgate , and amend and rescind admin-
istrative rules to effectuate the purposes and policies of this
chapter, within the limitations provided by law or by rules
adopted by the Board of Supervisors .
SECTION 7 : LEGALITY OF INCREASES
On or after the effective date of this ordinance ,
no increase in Space Rents in the Mobilehome Parks covered
15
by this ordinance shall be effective unless approved by the
Commission as set forth in this ordinance .
SECTION 8 : DETERMINATION OF RENT INCREASES
(a) Formula increases : Mobilehome Park Base Rents
and Space Rents may be increased by no more than 75% of the
percentage change in the CPI for the applicable CPI adjust-
ment period., or by no more than 8% per year, whichever is
less . Increases in user fees shall be subject to the same
limitation . Increases in user fees for coin operated de-
vices owned by the Owner may accumulate to accommodate the
capacity of the devices so long as the total increase is
within the limits .
( b) Increases which satisfy the formula requirements
shall be approved by the Commission as a matter of course subject
to the provisions of section 23 ( b) of this ordinance .
(c ) Calculation of the one-year limitation on ren-
tal increases herein shall be from the date the last
increase became effective at the particular Mobilehome Park .
(d) Owner Costs To Be Passed-Through to Tenant :
Tenant shall pay to Owner , on the herein described terms no
less than sixty ( 60) days after Owner has notified Tenant in
writing , the following increased costs of Owner to be
passed-through to Tenant as separately listed items on
monthly statement .
16
( 1 ) Government Required Services : For the
purposes of this ordinance , "Government
Required Services" shall be defined as ser-
vices required by governmental agencies which
are new or in addition to those services
legally required to be provided by Owner to
Tenant or to said -Mobilehome •park on '..ze
effective date of this ordinance.
Such services include fees , bonds ,
assessments , and charges legally levied by an
agency of Federal , State or local government
upon the Owner. Such services do not include
predictable expenses for operation of said
Mobilehome Park such as common area utilities
expenses or expenses which maintain the safe
and healthful use of Mobilehome Park facili-
ties .
The Owner' s actual out-of-pocket costs of
providing governmentally required services may
be passed-through to the Tenant upon sixty
( 60) days ' written notice using the following
formula : amount actually paid by the Owner,
divided by the total number of spaces in
said Mobilehome Park , divided by twelve ( 12)
17
months , equals the monthly sum for government
required services to be passed through to the
Tenant . Notwithstanding the formula described
above , only those costs of providing govern-
mentally required services in the twelve ( 12)
months immediately preceding the proposed
pass-through shall be reimbursed to the Owner
by the Tenant in the manner herein dDicribed .
The Owner shall pass-through to the Tenant
only those costs for governmentally required
services which are not reimbursed to the Owner
by insurance or other sources.
( 2) Real Property Taxes : For the purpose of
this ordinance , "Real Property Taxes" shall be
defined as County taxes levied against the
assessed valuation of said Mobilehome Park
which are normally payable to the County tax
collector pursuant to State law on the tenth
day of December and on the tenth day of April
of each calendar year. Such taxes shall not
include the Owner' s income taxes or
assessments subject to pass-through to Tenant
as "government required services . " New real
property taxes assessed to the Owner as a
18
result of new construction or remodeling of
said Mobilehome Parks common areas after the
effective date of this ordinance shall be
passed-through to the Tenant in the same
manner as other real property tax increases .
In the event that the Owner's real property
taxes increase in excess of two percent (2%)
over the taxes leviea for the preceding County
fiscal year , the amount of the increase in
excess of 2% may be passed-through to the
Tenant upon sixty ( 60) days ' written notice
using the following formula : amount actually
paid by the Owner for increased real property
taxes in excess of 2% over previous year ,
divided by the total number of spaces in said
Mobilehome Park , divided by twelve ( 12)
months' equals the monthly sum for increase in
real property taxes to be passed-through to
the Tenants . Increased taxes as a result of
transfer or "change of ownership" as defined
pursuant to Article XIII A of the California
Constitution , will not be passed-through to
:he Tenants .
19
( e ) Equalization Adjustment : Not later than
thirty ( 30 ) days after the effective date of this ordinance ,
an Owner may apply for an adjustment to the Base Rent for
individual spaces where adjustment is necessary to correct
inequities caused by the rent freeze imposed as of December
31 , 1984 . The application shall state the reasons why the
Base Rent was not equal to that charged comparable spaces .
SECTION 9 : CAPITAL IMPROVEMENT PASS-THROUGH
(a) Subject :o the vote requirements and the Capi-
tal improvement limitations hereafter described and also
subject to review by the Commission pursuant to section 11
of this ordinance , the actual net costs of a Capital Improve-
ment plus an interest charge to compensate the Owner for
the use of money in making the improvement , as described
below, may be passed-through to the Tenant upon sixty (60)
days ' written notice using the following formula : Net amount
actually paid by the Owner for Capital Improvement plus an
interest charge as described below, divided by the total
number of homesites in said mobilehome park affected by the
improvement divided by sixty (60) months ( the amortization
period for the Capital Improvement) , equals the monthly sum
for Capital Improvements to be passed-through to the Tenants .
( b) The interest charge that may be added to the
cost of materials and labor is 33.5% . This is derived from
20
the 12% interest rate used by the Internal Revenue Service
in calculating overpayment and underpayment of Federal
income taxes , computed on a declining balance over a 5-year
period with equal monthly payments ( the 5-year period repre-
sents the amount of time allowed for fully amortizing the
cost of Capital Improvements ) .
(c ) Alternative Amortization Periods and Interest
• Charges :
Period: 120 months Interest Charge : 72.2% of actual costs
108 months 64.0% of actual costs
96 months 56 .0% of actual costs
84 months 48. 3% of actual costs
72 months 40 . 1% of actual costs
60 months 33.5% of actual costs
36 months 19 . 1 % of actual costs
12 months 6 . 6% of actual costs
(d ) Installation of individual Capital Improvements
with a cost to Owner which would result in a pass-through
monthly payment to affected Tenants in excess of 5% of Base
Rent shall be contingent upon the majority approval of all
affected Tenants of said Mobilehome Park . Tenants at such
elections to approve or reject a proposed Capital Improve-
ment shall be entitled to one ( 1 ) written ballot vote per
affected space in said Mobilehome Park . Individual Capital
21
Improvements costing less than the amount that would result
in a pass-through monthly payment to affected Tenants in
excess of 5% of Base Rent shall not require the approval of
Tenants of said Mobilehome Park so long as the cumulative
total of pass-through monthly payments resulting from such
projects does not exceed 10% of Base Rent hereafter described .
Capital Improvement projects mandated by governmental
• authorities to protect the trealth or safety of sai:
Mobilehome park by Tenant shall be exempt from the Tenant
vote requirement described in this sub-paragraph.
(e) Capital Improvements which may be passed
through to Tenants shall not exceed a total of 10% of Base Rent
unless approved by 50% + 1 of the Tenants with the exception of
projects mandated by governmental authorities as described
above . However, the cost of Capital Improvement projects
mandated by governmental authority shall be included in the
calculation of the 10% of Base Rent limitation described in
this section for purposes of determining whether a Capital
Improvement project not mandated by governmental authority
requires approval of the Tenants.
SECTION 10 : INITIATION OF COMMISSION REVIEW
(a) In order to implement a rental increase as
permitted under section 8 of this ordinance, the Owner must
file with the Commission a proposed rent schedule on the
22
form provided by the Commission . The rent schedule shall
show the proposed new maximum rents for each space , calcu-
lated in accordance with the provisions of section 8 of this
ordinance .
The Owner shall serve each affected Tenant ,
either personally or by mail , with notice of the proposed
increase , in accordance with State law, and with notice that
a request for approval of same is being filed with ;he
Commission . The Owner shall file proof of such service with
the Commission concurrent with the filing of the rental
increase request . Copies of the rent schedule , request for
increase , and supporting documentation shall be available
free of charge to any Tenant requesting same at the Owner' s
office in the affected Mobilehome park .
( b) At its next meeting, but no later than
twenty-one ( 21 ) days from the date of filing, the Commission
shall review the rent schedule for completeness , accuracy ,
and compliance with this ordinance . If the Commission
determines that the schedule is complete , accurate , and in
compliance with this ordinance , it shall approve the sche-
dule and the new rents shall become effective as noticed by
the Owner.
If the Commission determines that the proposed
rent schedule is not complete , accurate , or in compliance with
this ordinance , it shall deny the increase without prejudice
23
based on the deficiency. It shall inform the Owner of the
deficiencies and take or direct other appropriate action .
If the Commission approves an increase lower than that ori-
ginally noticed by the Owner , the same shall be effective as
of the date noticed by the Owner.
(c ) If the Owner requests an increase above that
allowed by the formula set forth i^ section 8 of this ordi-
nance. he shall submit with the rentschedule a request for .
such increase , together with supporting documentation. The
notice and proof of service requirements set forth in sub-
division (a) of this section shall apply to such request .
(d ) The Commission shall set a hearing on any
request complying with the requirements of this ordinance no
sooner than ten ( 10) days and no later than twenty-one ( 21 )
days after receipt of the request and proof of service . The
Commission shall send written notice to the Owner who shall
post such notice in a conspicuous place of the time and place
set for the hearing. If the Commission approves an increase
as requested , or lower than requested , the same shall take
effect as noticed by the Owner or as the Commission may
otherwise direct .
( e) In any application for rent increase under
this ordinance , the Owner shall indicate which, if any, of
the Mobilehome spaces are covered by leases or contracts
r
24
which provide for more than a month-to-month tenancy,
together with the expiration date of each such lease or
contract . Any rent increase approved by the Commission
under this ordinance shall not be applicable to spaces
covered by such leases or contracts during the term of such
leases or contracts ; provided , however , that in acting upon
any application for rental increase hereunder, the
Commission shall set re . cs in accordance with this ordinance
for spaces covered by leases or contracts which shall become
applicable to such spaces upon the expiration of each such
lease or contract subject to the limitations stated in
subsection ( e) of section 4 of this ordinance .
SECT:ON 11 : CONDUCT OF THE HEARING
(a) All review hearings conducted by the
Commission shall be open to the public .
( b) All parties to a hearing may have assistance
from an attorney or such other person as may be designated
by said parties in presenting evidence or in setting forth
by argument their position . All witnesses shall be sworn in
and all testimony shall be under penalty of perjury.
(c ) In the event that either the Owner or the
Tenant(s) should fail to appear at the hearing at the spec-
ified time and place , the Commission may hear and review
such evidence as may be presented and make such decisions as
25
if both parties had been present .
(d ) All review hearings shall be tape-recorded .
Tapes shall be preserved for six ( 6 ) months , or longer, if
requested by either party affected by the hearing.
SECTION 12 : STANDARDS OF REVIEW
(a) In evaluating the rent increase proposed by
the Owner , the Commission shall consider, along with all
• relevant factors , changes in costs to the Owner attributable •
to increases or decreases in master land or facilities lease
rent , utility rates , property taxes , insurance , advertising ,
variable mortgage interest rates , governmental assessment
and fees , incidental services , employee costs , normal repair
and maintenance , and other considerations , including, but
not limited to , Capital Improvements , upgrading and addition
of amenities or services , and the level of rent necessary to
permit a just and reasonable return on the Owner' s property.
( b) Presumption of Fair Base Year Net Operating
Income : Except as provided in subsection (c) it shall be
presumed that the Base Rent adjusted pursuant to section 8
of this ordinance provided a fair return on property.
Owners shall be entitled to maintain and increase their
Net Operating Income from year to year in accordance with
subsection(c) .
(c) Rebutting the Presumption: It may be determined
r
26
that the Base Rent adjusted pursuant to section 8 of
this ordinance yielded other than a fair return on property ,
in which case , it may be adjusted accordingly . In order
to make such a determination , the Commission must make at
least one of the following findings :
( 1 ) The Owner ' s operating and maintenance
expenses in the Base Year were unusually high
or low in comparison to other' years . ' .n such ,
instances , adjustments may be made in
such expenses so the Base Year Operating
Expenses reflect average expenses for the pro-
perty over a reasonable period of time. The
Commission shall consider the following factors
( i ) The Owner made substantial Capital
Improvements during 1985 , which were
not reflected in the rent levels on the
Base Year Date ;
( ii ) Substantial repairs were made due to
damage caused by natural disaster or
vandalism;
( iii ) Maintenance and repair was below
accepted standards so as to cause signi-
ficant deterioration in the quality of
housing services ; and
27
( iv) Other expenses were unreasonably
high or low notwithstanding the following
of prudent business practice. In making
this determination , the fact that
property taxes prior to 1985 may have
been higher than in the Base Year shall
not be considered. It is not the intent
of the ordinance to reward ineff ' ;ient
business practices.
( 2) The rent on the Base Year date was
disproportionate due to one of the enumerated
factors below. In such instances , adjustments
may be made in calculating gross rents con-
sistent with the purposes of this ordinance.
( i ) The rent on the Base Year date was
established by a lease or other formal
rental agreement which provided for
substantially higher rent at other
periods during the term of the lease ;
( ii ) The rent on the Base Year date was
substantially higher or lower than at
other times of the year by reason of
seasonal demand or seasonal variations in
rent ; and
r
28
( iii ) The rent on the Base Year date was
substantially higher or lower than pre-
ceding months by reason of premiums being
charged or rebates being given for
reasons unique to particular units or
limited to the period determining the
Base Rent .
SECTION 13 : DECISION OF THE COMMISSION
(a) The Commission shall make a final decision no
later than ( 10) ten days after the conclusion of its hearing.
The Commission ' s decision shall be based on the prepon-
derance of the evidence at the hearing. All parties to the
hearing shall be advised of the Commission 's decision and
given a copy of the findings upon which the decision is based .
( b) Consistent with its findings , the Commission
may ( 1 ) permit the requested increase to become effective ,
in whole or in part ; ( 2) deny the increase ; or ( 3) if cir-
cumstances justify , order a reduction in rent to a rate
determined by the Commission .
(c ) If the Commission finds that an increase that
went into effect , or any portion thereof, is not justified ,
the Owner shall refund the amount found to be unjustified to
the Tenant within sixty ( 60 ) days after the decision of the
Commission is announced .
, l'
29
(d ) If the Comthission finds that a proposed
increase , or any portion thereof that was previously
inoperative , is justified , the Tenant shall pay the amount
found justified to the Owner within sixty (60) days after
the decision of the Commission is announced.
( e) The conclusions and findings of the Commission
shall be final and there shall be no appeal rights to the
• Board of Supervisors .
( f) Any party disputing the final conclusions and
findings of the Commission may seek review of the
Commission ' s actions pursuant to sections 1094.5 and 1094.6
of the California Code of Civil Procedure.
SECTION 14 : TENANT'S RIGHT OF REFUSAL
A Tenant may refuse to pay any increase in rent
which is in violation of this ordinance , provided that the
Commission has either not reached its decision or has found
the increase violates the provisions of this ordinance .
Such refusal to pay shall be a defense in any action brought
to recover possession of a Mobilehome space or to collect
the rent increase .
SECTION 15 : RETALIATORY EVICTION
Notwithstanding section 14 of this ordinance , in
any action brought to recover possession of a Mobilehome
space , the court may consider as grounds for denial any
r r
30
violation of any provision of this ordinance. Further, the
determination that the action was brought in retaliation for
the exercise of any rights conferred by this ordinance shall
be grounds for denial . Any action brought within six (6 )
months of a petition or complaint filed with the Commission
by the Tenant pursuant to this ordinance , shall be presumed
to be retaliatory ; this presumption affects the burden of
• proof and is rebuttable by the Owner.
SECTION 16 . VIOLATION-PENALTY
Any person violating any of the provisions , or
failing to comply with any of the requirements, of this
ordinance shall be guilty of a misdemeanor. Any person con-
victed of a misdemeanor under the provisions of this ordi-
nance shall be punished by a fine of not more than $500.00
or by imprisonment in the County Jail for a period of not
more than six (6) months or by both. Each violation of any
provision of this ordinance , and each day during which any
such violation is committed , permitted or continued , shall
constitute a separate offense .
SECTION 17 : CIVIL REMEDIES
If any Owner demands , accepts , receives or retains
any payment of rent in excess of the maximum lawful Space
Rent , as determined under this ordinance , then the Tenants
in such Mobilehome park affected by such violation, indivi-
•
e.
31
dually or by class action may seek relief in a court of
appropriate jurisdiction for injunctive relief and damages .
The prevailing party will recover costs and reasonable
attorney 's fees as part of any court judgment .
SECTION 18 : TERMINATION
This ordinance shall terminate seven (7) years from
its effective date unless repealed earlier , or. ext -,-ded by ' .
order of the Board of Supervisors. •
SECTION 19 : REVIEW BY THE BOARD OF SUPERVISORS
The Board of Supervisors shall review the effec-
tiveness of this ordinance in addressing the problems giving
rise to its enactment at least three ( 3) months before its ter-
mination and take appropriate legislative action thereon .
SECTION 20 : PROCEDURAL IRREGULARITIES
Formal rules of evidence or procedure which must be
followed in court shall not apply to Commission proceedings ,
except to the extent that the Commission shall determine .
No action of the Commission hereunder shall be held void or
invalid or be set aside by any court on the grounds of the
improper admission or rejection of evidence , or by reason of
any error, irregularity, informality, neglect or omission
(hereinafter called "error" ) as to any matter pertaining to
applications , notices , findings , records, hearings , reports ,
recommendations, or any matters of procedure whatever,
t r
32
including but not limited to those included in this section ,
unless after an examination of the entire case , including
the evidence , the court shall be of the opinion that the
error complained of was prejudicial , and that by reason of
such error the party complaining or appealing sustained and
suffered substantial injury , and that a difficult result
would have been probable if such error had not occurred or
• existed . There shall be no' presumption that error is preju
dicial or that injury was done if error is shown .
SECTION 21 : NOTICE TO NEW AND PROSPECTIVE TENANTS
Prior to or at the time of agreeing to rent space
to a new Tenant in a Mobilehome Park , the Owner shall pro-
vide each new Tenant or prospective Tenant with a copy of
the Mobilehome Park Rent Stabilization System Ordinance , as
currently in force.
SECTION 22: GUIDELINES
After a noticed public hearing, as it deems
necessary, the Board of Supervisors may adopt by resolution
guidelines to aid in the implementation of this ordinance.
SECTION 23: FEES AND ASSESSMENTS
(a) Administration Assessments : In order to
reimburse the County for the costs of administering and
enforcing this rent stabilization program, which benefits
and applies only to Mobilehome Parks and Tenants and
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not to other residents of the County , each Owner of a
Mobilehome park subject to this ordinance shall pay a
monthly assessment for each space in the park at a rate
established by resolution of the Board of Supervisors .
These funds paid to the County shall be used solely to admin-
Aster and implement this ordinance. The Board shall adjust
the amount of this assessment from ' ime to time to reflect
actual costs , and may accumulate a reasonable reserve for
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contingencies .
(b) Fees : The Board of Supervisors shall set fees
to be paid with the applications and requests for review of
decisions regarding applicability of this ordinance , a CPI
formula increase , utility pass-through, . change of occupancy ,
use , or expiration of lease adjustment , or equalization
adjustment and for increases which exceed the formula as set
forth in section 8.
SECTION 24. SEVERABILITY
If any provision or clause of this ordinance or the
application thereof to any person or circumstance is held to
be unconstitutional or to be otherwise invalid by a final
judgment of any court of competent jurisdiction , such inval-
idity shall not affect other provisions or clauses or
application , and to this end , the provisions and clauses of
this ordinance are declared to be severable.
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